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$FUSEF Could Rally Hard As Demand For #Cobalt Surges!
Fuse Cobalt Inc. ( FUSEF )
Alert Price: $0.0588
Float: 62.49M
Technical Analysis
SmallCap Voice Interview
It is cobalt that could become the battery boom's biggest winner...
This brings our attention to a promising Canadian cobalt exploration company who is working next to Glencore, the world’s biggest cobalt producer!
Canada is one of the most prolific mining regions in the world. Not only does the country have mining friendly laws, but mining makes up a sizable portion of GDP and employment in the country.
Just how promising is cobalt exploration in Canada? Pretty promising when you have several world titans including Jeff Bezos and Bill Gates backing a Canadian start-up mining venture!
If there were ever a sign of optimism for cobalt’s outlook it would be Tesla’s recent agreement to buy as much as 6,000 tons of the metal annually from Glencore.
A source familiar with the situation has said the contract will help Tesla shore up its cobalt supply for its new plants in China and Germany.
When you have a giant like Tesla making moves like this and big tycoons investing into the cobalt space, one can only imagine how important cobalt will be for the growing electric vehicle market!
With the cobalt industry outlook looking this favorable, it is the producers of cobalt that may stand to reap astronomical rewards.
Our latest trade idea, Fuse Cobalt Inc. ( FUSEF ) is an emerging player in the explosive cobalt boom.
Add Fuse Cobalt Inc. FUSEF ) to the Top of Your Watchlist
The company “seeks to generate and develop energy metal projects that accelerate our modern and environmentally conscious world.”
With a focus on “becoming a provider of strategic metals with an emphasis on cobalt via exploration and development using the latest technologies in conjunction with fiscal prudence, strategic acquisitions and efficient execution of plans and objectives.”
There could be a "Gold Mine" of Cobalt in Canada
Some of the biggest names in the world are backing a Canadian cobalt mining venture called KoBold Metals, which aims to create a “Google Maps” of the Earth’s crust, with a special focus on finding cobalt deposits.
The company's backers include big names such as Venture capital firm Andreessen Horowitz and Breakthrough Energy Ventures.
The latter is financed by well-known billionaires including Jeff Bezos (Founder of Amazon (NASDAQ: AMZN ), Ray Dalio (Founder of Hedgefund Bridgewater Associates), Michael Bloomberg (Founder of Bloomberg LP and former NYC Mayor), Richard Branson (Founder of Virgin Group and Virgin Galactic NYSE: SPCE ) and Bill Gates (Founder of Microsoft (NASDAQ: MSFT ).
KoBold Metals has acquired rights to an area in northern Quebec, just south of the world's largest cobalt producer Glencore’s (LSE: GLEN), nickel mine (Raglan Mine).
Fuse Cobalt Inc. ( FUSEF ) also has a long-term business relationship Glencore, having purchased the Glencore Bucke Cobalt Property from them, and along with ownership of the adjoining Teledyne Cobalt Property, the company has a 100% owned large land position located in the historic cobalt mining region of Cobalt, Ontario Canada.
These properties have three distinct agreements with Glencore, namely a back-in provision, a production royalty, and an off-take agreement.
“This recent activity from such knowledgeable and powerful people like Bill Gates, Jeff Bezos, Mike Bloomberg and Richard Branson, confirm that FUSE is on the right path to secure a cobalt metal resource in Canada. Canada is a friendly and supportive mining jurisdiction and FUSE is in a solid position to capitalize on this heightened interest in Canadian cobalt to supply the global technology and EV industries.”
- Mr. Robert Setter, FUSE President & CEO .
Mr. Setter recently discussed the strong state of the global cobalt market in an interview with SmallCapVoice.com
Speaking with SCV’s Stuart Smith, President and CEO Robert Setter explained Fuse’s business model and focus on exploring high value metals through the Company’s two wholly owned properties in Northern Ontario Canada.
Fuse’s strategy is to advance these projects into operations mining cobalt for use in a variety of end-use applications, such as batteries for EVs - a global market expected to reach $802 billion by 2027. (SOURCE)
Cobalt is a key component used in the majority of EV batteries, and Tesla’s ( TSLA ) recent deal to buy cobalt from Swiss miner Glencore is a key indicator that the cobalt market is heating up.
“These are exciting times for our company,” Setter told Smith. “We are well-positioned to take advantage of the massive growth that we see coming in the battery market for electric vehicles. Cobalt is considered a strategic metal with the Canadian and the U.S. governments agreeing to work together to secure private sources of cobalt and other strategic metals in North America.”
Fuse Cobalt Inc. ( FUSEF ) is a well-funded Canadian company whose focus is directed towards exploration of high value metals related to the cobalt battery industry.
The company's Ontario Cobalt Properties cover the southern extension of the former producing 15 Vein on the past-producing Agaunico Mine Property.
Historically, the Agaunico Mine produced 4,350,000 lbs . of cobalt and 980,000 oz. of silver during the mining boom of the early 1900’s (Cunningham-Dunlop, 1979).
Recent 2017 drilling on these Ontario cobalt properties revealed intersections of 21.9% cobalt over 0.36 M and 18.7% cobalt Over 0.15 M at Teledyne, (News Release Jan 18, 2018), plus intersections of 8.42% Cobalt over 0.30 metres on the Glencore Bucke Property (News Release Jan 17, 2018).
FUSE has two 100% wholly owned properties, Glencore Bucke (subject to a back-in provision, production royalty and off-take agreement) and Teledyne (subject to a 2% NSR) Cobalt Properties, located in Cobalt, Ontario.
The Glencore Bucke property is one of Glencore's longstanding Canadian cobalt assets!
Glencore Bucke Property
In 2018, the Glencore Bucke property was acquired from Glencore, a leading integrated commodity producer and trader, operating worldwide with diversified operations comprising around 150 mining and metallurgical, oil production and agricultural assets.
Glencore is one of the world’s largest producers of cobalt as a result of by-products created from its copper assets in the DRC and nickel assets in Australia, Canada and Norway.
The Purchase Agreement included a back-in provision, production royalty and an off-take agreement in favor of Glencore.
Prior to the commencement of Commercial Production, the Purchaser shall enter into an off-take agreement with the Vendor for all ores and/or concentrates produced from the Property and/or the Teledyne Property. The off-take agreement shall be on such terms and conditions as are commercially reasonable and at prevailing market prices.
This means Glencore will have to purchase the cobalt back at top tier prices!
The Glencore Bucke property consists of two patented mining claims totaling approximately 16.2 ha in area located on the west boundary of Fuse’s Teledyne Cobalt Project.
In 1981, Teledyne leased mining claim 585 (“Glencore Bucke Property”) from Falconbridge Nickel Mines Ltd. The company recognized the significant exploration potential that the Property had due to the possible southern extensions of the Cobalt Contact veins on mining claim T43819 that projected southward onto the Property.
In the fall of 2017, Fuse completed 21 diamond drill holes totaling 1,913.50 m at Glencore Bucke in a first phase of drilling designed to confirm and extend the existing known mineralized zones on the property. The program tested the Main Zone for a strike length of approximately 55 m and the Northwest Zone for a strike length of approximately 45 m.
Results were encouraging with a majority of holes hitting cobalt mineralization including 4.45% cobalt over 0.30 metres in hole GB 17-06 and 8.42% cobalt over 0.3 metres in hole GB-17-15 (core lengths only, not true widths.)
In 2018, Fuse completed 24 diamond drill holes totaling 2,559 m in phase II at Glencore Bucke with the intent of intersecting mineralized zones along strike and vertically above and below previous intersections reported in 2017 on the Main and Northwest Zones.
The Phase 2 program also tested several outlying targets with drill hole GB18-41 aimed at testing for mineralization at depth beneath a historical trench which intersected anomalous cobalt mineralization. Cobalt, zinc, silver and copper were present.
Not all holes were released, with holes GB18-31 through to GB18-40 expected in Q2 2020.
Teledyne Property
In the spring of 2018, FUSEF announced that it had earned a 100% interest in the Property with the vendors retaining a 2% (net smelter royalty (NSR).
The Property, located in Bucke and Lorrain Townships, consists of 5 patented mining claims totaling 79.1 ha, and 46 unpatented mining claim cells totaling approximately 705.99 ha. The Property is easily accessible by highway 567 and a well-maintained secondary road.
The property is subject to a production royalty in favor of New Found Gold and an off-take agreement in favor of Glencore Canada Corp.
Again... This means Glencore, the biggest cobalt player in the world, will have to purchase the cobalt back at top tier prices!
Based on historical drilling and data a cobalt resource was developed in the 1980’s however, it is not consistent with current 43-101 standards and will require work to be completed by a QP in order to be brought up to current NI -43-101 resource standards.
As such the Company is not treating the historical reserve estimate as a current mineral resource or mineral reserve. Over $25 million Can has been spent thus far, (2020 dollars inflation-adjusted) on the Teledyne Property resulting in valuable infrastructure including a development ramp and a modern decline going down 500 ft parallel to the vein.
During the fall of 2017, Fuse Cobalt Inc. (TSXV: FUSE | OTC: FUSEF ) had completed 11 diamond drill holes totaling 2,204 m designed to confirm and extend the existing known mineralization along strike, and up and down dip. The program tested the Teledyne Main Zone for a strike length of approximately 220 m. Significant results included TE-1704 with 1.82% cobalt over 6.00 m from 138.00 to 144.00 m, including 5.06% Co over 1.75 m from 141.25 to 143.00 metres (not true widths.)
In the fall of 2018, 9 additional diamond drill holes in Phase 2 drilling were completed totaling 1,713 m at Teledyne with the intent of intersecting mineralized zones along strike and vertically above and below previous intersections reported in 2017. This program also tested several outlying targets including beneath a historical trench with veining present at surface and to intersect the East Zone.
These results are expected to be available in Q2 2020.
We need green energy and cobalt is critical to the renewable energy transition.
The metal has a has a key role in developing renewable energies such as solar power, wind power and biogas.
A global response to deadly air pollution, the world's greenhouse gas emission targets, and energy poverty are just a few reasons the global green energy revolution has momentum. It is the future of our planet.
From the electric vehicle movement to energy storage systems, to our global population staying connected with modern technology, the need for rechargeable lithium-ion batteries and green energy continues to grow.
Cobalt is additionally super-important in the production of batteries for cellphones and electric vehicles.
Cobalt is an essential ingredient in lithium-ion batteries that power millions of plug-in electric cars.
The largest use of cobalt is in portable consumer electronics like cell phones, laptop computers, and tablets, which are also all powered by lithium-ion batteries.
The outlook for cobalt is incredible:
The global cobalt market size is projected to be valued at USD 12.93 billion by 2025, according to a new study by Adroit Market Research.
Powering more of the cars we drive with electricity is one of the keys to reducing greenhouse gas emissions. Shell’s Sky scenario predicts that most new car sales could be electric vehicles by 2050. By 2070 almost all cars could be electric vehicles.
The global demand for cobalt is expected to surge to 200000 mt per year by 2025, according to Eurasian Resources Group ( ERG ).
According to Allied Market Research, the global lithium-ion battery market was valued $36.7 billion in 2019, and is projected to hit $129.3 billion by 2027, at a CAGR of 18.0% from 2020 to 2027.
Reports surfaced earlier this year that revealed iPhone maker Apple is in talks to procure cobalt, the essential component in smartphone batteries, direct from mining companies.
For tech giant Apple to make such a move signifies an impending supply shortage.
“Apple is a buyer of batteries, not a buyer of battery components, and it’s a number of steps away from the raw materials side. So this is significant — the reason they’re doing it is supply chain visibility,” Simon Moores, managing director of Benchmark Minerals, told CNBC.
Another important component in a lithium-ion battery is lithium.
Lithium prices plummeted in 2019 but production of the battery metal is set to almost triple by 2025 to more than 1.5 million metric tons says S&P Global . (SOURCE)
FUSE announced in July that it has as acquired, by staking, 100 placer claims covering 2000 acres (809 hectares) at Teels Marsh, Nevada.
The property is called Teels Marsh West and is highly prospective for Lithium brines!
It is located approximately 48 miles northwest of Clayton Valley and the Rockwood Lithium Mine, North America’s only producing brine-based Lithium mine supporting lithium production since 1967.
The electric vehicle car revolution is already underway and this could be one of the best times to pay attention to cobalt and lithium stocks such as FUSEF
“Vertical integration between battery manufacturers and auto makers with exploration companies like FUSE appears to be inevitable. We find that global technology companies and global EV automakers themselves are in the best position to facilitate the mining required to supply them with cobalt, lithium, nickel and other input metals from safe jurisdictions. These manufacturers have cash flow and access to financing to fund these exploration operations."
"The world’s largest technology companies like Microsoft (NASDAQ: MSFT ), Apple (NASDAQ: AAPL ), Amazon (NASDAQ: AMZN ), Tesla (NASDAQ: TLSA) and others are very interested in securing a safe and ethical supply of this strategic metal internationally for their global supply chains. Canada is a shining example of this type of safe and ethical mining jurisdiction.”
- Mr. Robert Setter, FUSE President & CEO .
Currently, about 65% of the world’s cobalt is mined in the Democratic Republic of Congo, much of it by hand and employing children and young men.
New cobalt mines outside the DCR, such as Canada, could become the preferred source of ethically-mined cobalt in the medium-term.
It was in 2016 that Darton Commodities projected that battery consumption will account for ~60% of all cobalt demand in 2020, representing a staggering 58% increase in battery demand from 2016 levels.
Cobalt is a critical component in lithium-ion batteries, perhaps even more critical than lithium…
Gates and Bezos wouldn't spend billions backing a Canadian cobalt venture if they didn't think Canada is a hotbed for cobalt...
Tesla CEO Elon Musk has said in the past that he is trying to lessen his dependence on cobalt but striking a huge deal with Glencore to buy cobalt says otherwise.
Tesla has been skyrocketing since 2020 started and hit nearly $1,800 a share before announcing plans for a 5-for-1 stock split. The company has been adding billions of dollars to its market cap as traders continue to see the appeal of electric vehicles and how important it is to remove dirty fossil-fueled cars from the roads .
Being a significant future customer of Glencore could quickly get FUSEF recognized!
Recent months have shown growth in the Canadian markets and we are thrilled to be the one bringing these young, “growth-focused” companies to light.
Technical Analysis
We've done our very own chart analysis and see the potential for a big move from here!
The share structure also seems attractive to those looking for a ticker with tremendous upside potential!
Bullish Indicators:
RSI Bounced Off Long Term Support
Major Moving Averages Rising In Support As Stock Bounces Off Strong Horizontal Support Level .
Possible Cup & Handle Formation
Stochastic Bottomed & In Bullish Reversal
The Bottom Line
FUSEF is a quality Canadian company that is flying under-the-radar at present, yet that could soon change - they seem to be building momentum and catching more eyes.
Now may be the perfect time to take a closer look at FUSEF
As always, we encourage you to do further research. Also, when you find yourself in a position to profit, it is often wise to do so.By Viewing this Content, you Agree that you Have Read and are in Full Understanding of both our Disclaimer & Privacy Policy(*Remember to use a Stop-Loss Order to protect your gains, as well as limit possible losses.)
Best Regards,
What a great looking chart! Printing one year highs on record breaking Volume!
$FUSEF
Huge volume today! Much bigger than yesterday's and it was a 52 week high
$FUSEF
Another huge volume day as it prints new 52 week highs again
$FUSEF
New HOD +58.2% at .1033
$FUSEF
+31.7% at .086 with .1047 up on the Ask now!
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